UK-based clean energy provider GeoPura, which generates hydrogen, and stores and transports the fuel to customers, has completed its inaugural debt funding with £22 million. The investment came from a panel of bank and non-bank financial institutions, including BNP Paribas Leasing Solutions, Close Brothers Asset Finance, HSBC UK, and Siemens Financial Services.
The debt funding consists of fixed-rate asset loans and hire purchase agreements. All funding partners have indicated strong interest in increasing their debt funding capacity as GeoPura scales.
Previously, the company raised £56 million earlier this year and £36 million in Series A funding back in February 2023. The investment came from Siemens Energy, General Motors Ventures, Barclays Sustainable Impact Capital, Swen Capital Partners (which backed Novocarbo and Traceless Materials), and the UK Infrastructure Bank. With this, the total capital raised by the company accounts for £114 million in two years.
Expand its fleet of HPUs
The proceeds will be used to recapitalise and fund GeoPura’s growing fleet of Hydrogen Power Units (HPUs) and key supporting infrastructure such as tube trailers. It will also help facilitate the manufacture and deployment of over 3,600 HPUs by 2033. The company has increased its headcount by over 50% in 2023, including its first hydrogen apprentices.
The company is also investing in green hydrogen production facilities to fuel these units, including HyMarnham Power in the East Midlands, one of only 11 projects to be allocated funding as part of the UK Government’s HAR1 allocation round.
Delivers first-of-its-kind HPU
Led by CEO Andrew Cunningham, GeoPura provides a power generation technology solution that uses renewable energy, normally solar PV or wind, to create hydrogen and hydrogen-based, zero-emission fuels. This fuel is then transported to locations where a local generator converts it to electrical power. From start to finish the process is clean and carbon-free, the only by-product is pure water.
Its mission is to decarbonise the global economy by making zero-emission fuels through renewable energy. The company’s HPU technology can be used to replace diesel generators and power commercial EV charging. Its HPU can be used off-grid or alongside an existing grid supply. HPUs deliver reliable, large-scale power, with the only byproduct being water you can drink.
With hubs in Sheffield, Matlock, Nottingham and Newcastle upon Tyne in the UK, GeoPura is mass manufacturing HPUs in collaboration with partner Siemens Energy, bringing more generators to market to service growing customer demand.
Derek Bulmer, CFO of GeoPura, said: “Securing this debt funding is a pivotal milestone in our journey to build a global fleet of over 3,600 HPUs, which will require over £2.5 billion in capital over the next decade. This funding will not only accelerate our expansion but also drive significant reductions in carbon emissions and improve local air quality while contributing directly to the UK’s net zero targets. Partnering with world-class debt funders like BNP Paribas Leasing Solutions, Close Brothers, HSBC UK, and Siemens Financial Services is critical to delivering this vision and achieving these goals. This milestone supports our commitment to a cleaner, healthier future and underpins the vital role of sustainable finance in advancing global environmental goals.”
Investors’ views
Rachael Guest, Global Relationship Director at HSBC UK, adds: “At HSBC UK, helping our customers to scale up new climate tech solutions is a key part of our net zero strategy. We are pleased to support GeoPura in advancing green hydrogen technology in the UK which could play an important part in meeting the nation’s future energy needs.”
Julian Hobbs, CEO, Siemens Financial Services UK, adds: “We are seeing real progress in the UK hydrogen value chain, from ever-growing production capacity to downstream processing. The launch of the government’s first hydrogen allocation round (“HAR1”) and the announcement of 11 successful projects puts the UK at the forefront of commercial-scale green hydrogen production projects in Europe. Siemens has leading technological expertise in the hydrogen sector and combining this with our financing capabilities allows us to provide meaningful support to GeoPura’s development. Working with GeoPura is also in line with our commitment to support the transition to net zero. A case of financing that makes a difference.”
Eric Gandemer, CEO, BNP Paribas Leasing Solutions UK, commented: “At BNP Paribas Leasing Solutions, we are committed to driving the transition to a low-carbon economy. By supporting innovative solutions like Geopura’s Hydrogen Generators, we are not just financing assets but also investing in a sustainable future. By providing tailored financial solutions, we enable businesses to adopt these technologies and lead the way in the global energy transition”.
Matt Roper, CEO of Close Brothers’ Commercial business, stated: “Deals like this speak to our commitment to the green agenda and support of new technologies. We were an early funder of on-shore wind farms and electric vehicles, and we see a similar future for green hydrogen, which is why we are so delighted to be partnering with the team at GeoPura. Given the pace at which the technology is being adopted, we are looking forward to being part of GeoPura’s journey as they continue to innovate and expand.”
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